Yahoo Finance Bed Bath & Beyond to Close 150 Stores, Layoff 20% of Employees Amid Financial Struggles
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Bed Bath & Beyond announced it would shutter stores and lay off employees amid ongoing financial struggles.
The company said it plans to close about 150 "lower-producing" locations across the country and reduce its workforce by 20%. It also announced it received more than $500 million in new financing.
According to the company's press release, the retailer's same-store sales are down approximately 26% compared to the same fiscal quarter last year.
RELATED: Bed, Bath & Beyond Closing 40 Locations Nationwide in First Half of the Year
The chain will also adjust its merchandising strategy. It plans to bring back popular national brands and introduce "new, emerging direct-to-consumer brands" in its stores. This marks a change in their recent strategy of launching more in-house owned brands.
"We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns," the company's Interim CEO Sue Gove said.
She continued, "In a short period of time, we have made significant changes and instituted enablers across our entire enterprise to regain our dominance as a preferred shopping destination for our customers' favorite brands and exciting products."
Following the announcement, the retailer's stock fell 26% in premarket trading.
The news came just days after an important investor sold a large stake in the company, according to CNN Business, which also reported that some Bed Bath & Beyond suppliers had halted shipments to the store because of unpaid bills.
RELATED: Bed Bath & Beyond Is Cutting Back on Its Famous Coupons — Here's Why
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Bed Bath & Beyond previously closed a total of 40 locations nationwide in the first half of 2020.
"We're continually evolving to serve our loyal Bed Bath & Beyond customers better — whether they come to us at one of our 900+ stores or are one of the millions who shop with us online each year," a spokesperson said at the time.
RELATED: Bed Bath & Beyond Just Dropped a Sale on All Things Sleep Ahead of Daylight Saving Time
In October 2020, the retail chain slowed down on its coupon model after analyzing recent shopping trends.
"Today, we have an over-reliance on the coupon," Joe Hartsig, the then-chief merchandising officer told investors at the time, adding that the company came to the realization that about 40 percent of their promotions were "ineffective."
